The chairman of Natwest has declared it is ready to bring an end to the ‘sorry tale’ of government involvement as a public sale of shares in the lender draws closer.
Rick Haythornthwaite, who took over in January, told the bank’s annual general meeting in Edinburgh: ‘A return to private ownership is now in sight.’
And he said he was confident that Paul Thwaite – the bank’s fourth chief executive since it was rescued from collapse in 2008 – would be the last to answer to Treasury shareholders.
Haythornthwaite’s remarks came as the Treasury, which owns a stake of just under 29 per cent in the lender, prepares to launch a ‘Tell Sid’ style sale of part of its holding this summer.
‘I think removing that overhang is of value but it also brings an end to what is a sorry tale for the UK and a sorry tale for the bank,’ he said.
End of an era: Natwest chairman Rick Haythornthwaite, who took over in January, told the bank’s annual general meeting in Edinburgh: ‘A return to private ownership is now in sight’
Natwest –then known as Royal Bank of Scotland – was effectively nationalised in a £46billion rescue after it was brought to the brink of collapse under Fred ‘the Shred’ Goodwin.
At its height, the taxpayer owned 84 per cent of the lender.
This stake had since been gradually whittled away in a series of sales to private investors.
Under the leadership of former chief executive Alison Rose, the bank – which includes the Royal Bank of Scotland, Natwest and Ulster Bank brands – ditched the RBS group name as it sought to make a break with its crisis-ridden past.
However, Rose was forced to quit last year after becoming ensnared in a scandal of her own over the decision to drop former Ukip leader Nigel Farage as a customer of the group’s private bank, Coutts.
Aside from the crisis, however, the bank’s recovery has continued and earlier this year it posted its strongest annual profits since 2007.
The Government has committed to fully exiting its shareholding in the bank by the 2025-26 financial year.
Haythornthwaite said yesterday: ‘This is a shared ambition which we believe is in the best interests of the bank and our shareholders.’
Shares yesterday closed up 2.2 per cent, or 6.1p, at 285.8p.
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